Yes Bank Ltd, India's fifth largest private-sector lender by assets, has had a tumultuous couple of months since the country's central bank trimmed extension to its chief executive officer's (CEO's) term in September.
The move by the Reserve Bank of India (RBI), which has already clamped down on the financial sector due to rising levels of bad loans, has hit Yes Bank's share price hard and also spurred several departures in the company's top brass.
The developments since September 19 have wiped off over 290 billion rupees ($4.06 billion) from the company's market value, as of Tuesday's close.
Here's how the saga unfolded: June 12: Yes Bank's shareholders approve Rana Kapoor's re-appointment as managing director (MD) and CEO for three years from September 1. August 30: Bank gets RBI's nod for Kapoor to continue as MD and CEO till further notice from the central bank. September 19: RBI cuts short Kapoor's term till January 31, 2019. September 21: On the first day of trade after RBI's announcement, Yes Bank shares tank over 30 percent, and the lender loses as much as $3.1 billion in market value.
Market insiders say RBI's move exemplifies its increasingly assertive approach in tackling the bad debt problem plaguing India's banking sector.
September 25: Lender's board decides to seek RBI's nod to extend Kapoor's term until at least April 30, 2019, says it will form a committee to search for Kapoor's successor. September 28: Kapoor, in a tweet, says he remains committed to interests of the bank and its stakeholders. He also says he will never sell his promoter shares, but pass them on to his daughters.
Rating firm CARE Ratings places Yes Bank's debt instruments under 'credit watch with developing implications', citing RBI's move to restrict Kapoor's term.
October 5: Bank names T S Vijayan, former chairman of India's insurance regulator, and OP Bhatt, former chairman of State Bank of India, as external experts of the search and selection committee. October 11: Yes Bank appoints advisory firm Korn Ferry to help find a new CEO. October 17: RBI refuses to give Rana Kapoor more time at the bank and asks the lender to find a new CEO by February 1, 2019. Yes Bank says it aims to complete the recruitment process by mid-Dec. October 25: Yes Bank's second-quarter profit misses estimates by a wide berth as provisions for bad loans and mark-to-market losses more than double, and asset quality deteriorates.
The lender also says it has an exposure to debt-laden Infrastructure Leasing and Financial Services.
October 26: The bank's CEO search panel finalises a potential candidate profile. Korn Ferry also shares a list of candidate pool. November 12: Media report says Yes Bank sought guidance from the RBI on Ashok Chawla continuing as chairman after being named in a corruption chargesheet. November 14: Ashok Chawla resigns from Yes Bank's board. Vasant Gujarathi also steps down as independent director. November 15: OP Bhatt resigns as an external expert of the search and selection committee, due to "potential conflict of interest". November 19: Independent director Rentala Chandrashekhar resigns. November 20: Yes Bank says that selection process for the MD and CEO is on track, recent resignations of board members bear no impact.
Efforts are underway for mutual resolution between Rana Kapoor and Madhu Kapur and her family, the co-promoter.
Board now consists of seven members, after addition of Uttam Prakash Agarwal.